Sunday, September 24, 2006

Compulsory Third Party Motor Liability Insurance

What is compulsory third party motor liability insurance?

This insurance ensures that damage to third party health or property caused by an accident for which you were responsible is covered.
A policy may be taken out by the owner of a vehicle or by a lawful possessor or person authorised by the owner on behalf of the owner.
This insurance has been provided for in the Law on Compulsory Third Party Motor Liability Insurance of Vehicle Owners and Possessors, which entered into force on 1 January 2002. The driver of a vehicle stopped by a road police patrol must also show together with other documents a valid certificate of insurance confirming that he has a respective policy.

What are the advantages of ERGO?

  • In case of minor damage, such as broken glassware or minor injury, you will be able to receive a compensation at all local offices of HANSA-LTB Bank on the same day you receive your cheque.
  • In case of accident while travelling, ERGO companies across Europe will provide you with assistance services.
  • Insurance agency closer to your home. Today the distribution network of ERGO has spread across all greater cities and towns of Lithuania.
  • Financial credibility ensured by the German ERGO Insurance Group and worldwide reinsurance companies.
What gives rise to a claim?

Upon purchase of the compulsory third party motor liability insurance, ERGO Lietuva will indemnify for damage caused during a traffic accident to:
  • Third party property
  • Third party health

Types of policies:

  • Ordinary: every vehicle registered in Lithuania must be covered by this type of policy. From 1 March 2002 each and every vehicle must be insured before it is registered.
  • Group: farmers may take out one group policy to cover up to five vehicles owned by the same owner, however, only one of those vehicles may be a car.
  • Frontier: from 1 March 2002 only vehicles whose owners have a valid Third Party Liability Compulsory Frontier Insurance policy will be allowed to cross into Lithuania.

What are the amounts of the sums insured?

The sum insured in respect of damage to third party health is LTL 30,000 and to third party property LTL 30,000.

Call our toll-free number 8 800 27000